Dept. III: Finance

Lectures

The lectures at the Department of Finance cover a broad area of topics in the realm of finance.

Here you will find an overview of all available courses at the Department of Finance. For questions about specific courses please contact the semester supervising employees. You can find them in the direct links on the left hand side or contact the respective employee via email.

All course materials are available for download from the online learning platform ILIAS of the University of Stuttgart. 

Lectures in the Bachelor's degree program

The responsibility of department III for the courses offered in the module Business Administration II (BWL II)
currently covers the subject "Investments and Financing". The main focus with regard to content of this course is as follows:

Targets:

Students master the terminology and basic knowledge of decision-oriented investment and financing theory. Students will be able to solve basic problems in the areas of investment and financing and to independently familiarize themselves with more advanced problems.

Content:

Calculations with interest rates and bond valuation, Net Present Value and other investment criteria—Risk and return, Introduction to Portfolio Theory and Capital Asset Pricing Model—Corporate finance: internal financing, external financing, cost of capital, Modigliani-Miller theorem

The course is offered every summer semester and consists of a lecture and a tutorial.

Targets:

Students have in-depth knowledge in corporate financing. They understand how the cost of capital is composed and can make well-founded decisions on payout policy, equity and debt financing, and capital budgeting.

Content:

Different possibilities of corporate financing, calculation of capital costs, capital structure (Modigliani/Miller, trade-off theory), payout policy, signaling character of financing decisions (from the perspective of the agency theory), valuation, capital budgeting, working capital management.

The course is offered every summer semester and consists of a lecture and a tutorial.

Targets:

Students understand the relevance of fundamental theories of investment valuation for common investment strategies and methods. They are able to apply and critically assess different methods for the valuation of risk-bearing financial securities. Students are able to select adequate performance measures depending on the objective. Interest-bearing financial securities can be valued against the background of various yield curves. Key methods for measuring risk in fixed-income securities can be described, as well as basic instruments for risk management of risk-bearing financial securities, fixed-income securities and portfolios.

Content:

Equilibrium models, time and risk dimensions of investments, information efficiency, portfolio theory, capital asset pricing model, arbitrage pricing theory and multifactor models, portfolio management and performance measurement, fixed income fundamentals, interest rates and yields, fixed income risk measures, risk management for equity and fixed income, cost of capital.

The course is offered every winter semester and consists of a lecture and a tutorial.

Targets:

After completing the module, the students have deepened knowledge of selected theoretical and application oriented problems of investment and financial management.

Content:

Changing contents.

Seminars in summer 2021 can be found here (in german).

Lectures in the Master's degree program

Targets:

Students have in-depth knowledge of derivatives, i.e. forwards, futures, and options. They are able to price them and use them in different ways in the context of financial and risk management.

Content:

Introduction to options, forwards, and futures, no-arbitrage concepts, pricing of forwards and futures, American and European options, payoff diagrams for puts and calls, put-call parity, upper and lower bounds for option prices, pricing of options in the binomial model and the Black-Scholes model, trading and hedging strategies, risk management with derivatives, Option Greeks.

The course consists of a lecture and an excercise and is offered every Wintersemester.

Targets:

Students have in-depth knowledge of the valuation of firms. They understand the necessary accounting information and can critically review a company's key performance metrics. Students are able to forecast future cash flows that are necessary for the valuation of a firm. They can determine risk-adequate cost of capital. Students can apply different approaches to value a company and understand the specific assumptions and limitations of the models.

Content:

Analysis of financial statements to determine and forecast cash flows of companies, Du Pont analysis, models to determine the cost of capital, intrinsic valuation methos (Dividend Discount Model, Firm Free Cash Flow Model, Adjusted Present Value Model), relative valuation using multiples, real options approach.

The course consists of a lecture and an excercise and is offered every Sommersemester.

Targets:

The students are able to structure independently complex tasks from the area of Financial and Risk Management and to develop proposals for solution for it.

Content:

Changing contents.

Seminars in summer 2021 can be found here (in german).

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